Did you know that more than 36% of people in the United States are renting out their homes?
Buying a home has proven to be challenging with the competitive market and housing demand, leaving many people to renting.
If you have a property that you want to rent, there are a few things to know to prepare for your tenants.
Continue reading to learn about some of the best landlord tips that will keep you from losing money or your sanity!
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1. Conduct Tenant Screenings
One of the best landlord tips to follow is tenant screenings.
When it comes to investing your money and time to rent a property, you want to make sure that the people living there will be kind and respectful. Skipping the screening part for tenants can put you at risk for inviting someone in who won’t pay their rent, will trash the place, or lead to other issues.
A thorough screening should include reference calls, applications, and credit searches. Getting this information will ensure that the people you accept to move in will be trustworthy and pay rent on time each month.
Asking for references can also be a great way to ensure you are getting a good candidate. Past landlords, friends, and family can vouch for a couple trying to move to a new area.
2. Manage Property Like a Business
Managing rental properties like a business will help you make the most profit.
Many people recommend treating your property as a business because when you don’t, you can lose a lot of money. Letting friends and family stay on your property for a discounted rate or nothing at all might seem like a good idea but the bills have to get paid somehow.
Organizing and managing finances will keep you on top and prepared for any emergencies. You should have a business plan, budget, and goals established before renting out.
It is also important to treat this as a business because you need to have professional interactions with the tenants.
3. Prioritize Repairs
If you want to become a landlord that tenants are happy with, you should always prioritize repairs.
Getting repairs and upgrades to the property will increase happiness among tenants and show that you care. You need to prioritize repairs also because you can get sued or tenants might threaten to withhold rent until it gets addressed.
The sooner that you fix a problem, the cheaper and easier it will be to repair. Putting a bandaid over a serious problem might work temporarily, but it tends to cost landlords much more money in the end.
4. Get Security Deposit Insurance
Many landlords get security deposit insurance to help protect themselves and the property.
You can learn more about Security Deposit Insurance, however, the point is to cover any damage. Before the tenant moves in, they typically pay the landlord a lump sum of money to hold their spot and serve as a contract.
Any money that the landlord gets from tenants, besides the rent advances, is help to protect the landlord. When the tenant moves out, they will either get their security deposit back or only a partial amount.
Property damage, key replacements, and cleaning can all become large expenses. If the tenant does not follow the contract agreements, you can withhold the money to help cover the costs.
5. Use Online Resources
There is plenty of landlord advice and resources online for you to access at any time.
Using online resources to help find tenants, fill out applications, and manage finances can save you time and money. A lot of the resources are free to use and will help you better manage your property so that you don’t lose any money.
By posting rental listings online and through applications, you can recieve better candidates. The process becomes much simpler when you can access information online about the tenants’ history and if they are reliable.
6. Find Contractors
Whether you are a new landlord or a professional, you need to find contractors in your area.
Since owning a property comes with maintenance and damage repairs, you need to have the right connections to get them fixed. Plumbing, construction, and electrical contractors can help you keep your building functioning.
Although you might be able to save some money on doing the repairs yourself, it is a risk that can lead to larger bills. Hiring a contractor is best because they can fix the problems quickly and already have the tools and materials needed to get the jobs done.
Think about the problems that you will encounter on the job. This will help you hire a contractor that can come practically any time of the day.
7. Keep All Documentation
Much like running a business, you should keep all documentation of agreements and conversations.
Tenants can cause issues even after the move-out, especially if they are getting evicted. Some people might threaten to take you to court and you need to be prepared. Having records of email, text, and conversations can help save your back in these situations.
For example, if someone tries to sue a landlord for not fixing something in an apartment but they have proof that they tried to, the landlord will be safe. Document anything about requests, warnings, and late payments. You should put the date of these conversations on the documentation.
These Landlord Tips Are Effective
When you are in property management, the job doesn’t ever seem to end.
Using these landlord tips will help you get on top of the property and effectively manage it. Utilizing resources and conducting screenings can prevent a lot of problems from occurring.
The internet will make it easy to find tenants, accept applications, and manage finances. As long as you protect yourself with insurance and documentation you will be prepared for anything.
Be sure to check out our blog for more articles about becoming a landlord and running a successful business!